A Right to Information (RTI) query filed by India Today with the
Department of Financial Services (DFS) has revealed how much
taxpayer-funded public sector banks (PSBs) are spending on hiring recovery agents.
The findings show a mix of partial transparency and widespread stonewalling.
Recovery agents in India have faced controversy over allegations of
harassment, intimidation, and privacy violations. The Supreme Court has
repeatedly criticized banks for using coercive methods that flout
Reserve Bank of India (RBI) guidelines on fair recovery practices.
*What the RTI Findings Reveal*
India Today asked PSBs to disclose:
- Year-wise spending on recovery agents for the last five years
- Number of recovery agents/agencies engaged annually
- Internal policies, commission rules, and incentive structures
The responses showed a clear divide between a few transparent banks and several that refused to share details.
*Banks That Shared Detailed Data*
PUNJAB NATIONAL BANK (PNB)
| Year | Amount Paid (Rs.) | No. of Agencies |
|---|---|---|
| 2019–20 | 37.03 crore | 514 |
| 2020–21 | 36.71 crore | 602 |
| 2021–22 | 57.95 crore | 626 |
| 2022–23 | 81.57 crore | 787 |
| 2023–24 | 49.62 crore | 590 |
PNB clarified that no performance-based incentives are given to agents;
commissions are paid as per approved guidelines.
Internal policies and audits were withheld under Section 8(1)(d) of the RTI Act citing “commercial confidence.”
BANK OF MAHARASHTRA
| Year | Amount Paid (Rs.) |
|---|---|
| 2019–20 | 14.26 crore |
| 2020–21 | 16.94 crore |
| 2021–22 | 21.23 crore |
| 2022–23 | 21.38 crore |
| 2023–24 | 31.08 crore |
Agent count increased from 476 in 2022–23 to 547 in 2023–24.
CENTRAL BANK OF INDIA
Spending rose from Rs 2.42 crore in 2019–20 to
Rs 5.87 crore in 2023–24, with agent count increasing from
184 to 279.
INDIAN BANK
Partial disclosure on commissions paid:
| Year | Amount Paid (Rs.) | No. of Agents |
|---|---|---|
| 2021–22 | 33.20 crore | 867 |
| 2022–23 | 59.40 crore | 988 |
| 2023–24 | 68.74 crore | 934 |
—
*Banks That Refused to Share Data*
Several PSBs invoked commercial confidence and
disproportionate resource diversion under
Sections 7(9) and 8(1)(d) of the RTI Act:
- State Bank of India (SBI) – Refused disclosure even after appeal
- Bank of Baroda – Cited lack of centralized data
- Bank of India, Canara Bank, IOB, Union Bank, UCO Bank, Punjab & Sind Bank – All denied details
Recovery agents directly affect borrowers and public funds. Without transparency,
taxpayer money spent on private recovery operations lacks accountability, and
borrowers remain vulnerable to aggressive practices.
News Source: India Today RTI Investigation
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